Acquisitions15 Jul 2026, 12:30 pm
Asian Granito Converts Loan to Equity in UAE Subsidiary, Dilution to 51%
AI Summary
Asian Granito India Ltd announced a board meeting outcome where it approved the conversion of outstanding loan and expenses from its wholly-owned subsidiary, Harmony Surfaces Marbles TR. LLC S.P, Sharjah, UAE (HSM Sharjah), into equity shares. The company will subscribe to 372 equity shares for AED 13,00,430 (approx. ₹3.38 crore). Additionally, HSM Sharjah plans a fresh equity issue to third-party investors, which will dilute Asian Granito's shareholding from 100% to 51%. This will result in HSM Sharjah ceasing to be a wholly-owned subsidiary and becoming a subsidiary, with Asian Granito retaining majority control. The move aims to enable the subsidiary to raise funds for business expansion.
Key Highlights
- Asian Granito converts ₹3.38 crore loan into equity in UAE subsidiary.
- Subsidiary's stake dilution to 51% due to third-party investment.
- HSM Sharjah will become a subsidiary, not a wholly-owned one.
- Acquisition is at arm's length, based on a valuation report.
- Transaction aims to fund subsidiary's expansion and operational needs.
Price Impact
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